Decision details

Decision:

To recommend to full Council on 25 July 2023:

(1)         To approve the restated 2023-24 General Fund Revenue budget, including the business case for additional planning resources.

(2)         To approve the repurposing of earmarked reserves as detailed in the report.

(3)         To endorse the findings in the report.

(4)         To note the response by the Chief Finance (Section 151) Officer to the S114(3) duty and his recommended immediate actions including a range of expenditure controls, which will be managed through a Financial Control Panel consisting of Senior Officers and chaired by the Section 151 Officer.

(5)         To note that a financial recovery plan is being developed by the Chief Finance Officer in liaison with the Joint Management Team, together with milestones and delivery targets, to be reported to October Full Council for approval.

(6)         To endorse the management action of establishing a task force to deliver the financial recovery plan at pace, to provide the capacity, skills, and capability to support recovery.

(7)         To note that the Executive will set up an executive working group for the following purposes:

a)       to receive and comment on regular updates on the Council’s preparations for the Medium-Term Financial Plan restatement in October and its implementation;

b)       to provide a sounding board for the Executive and officers on the options that are coming forward to close the projected financial gap; and

c)        to guide wider communication with councillors and beyond

(8)         To note that expenditure controls as a feature of how the Council conducts its business will remain in place until such time that the MTFP is balanced, and that such controls shall be determined by the Chief Finance Officer and the Chief Executive, in consultation with the Lead Councillor for Finance and Property.

(9)         To authorise the Chief Finance Officer and Chief Executive to draw down earmarked funding to provide capacity to address and deliver the financial recovery plan and note that the Chief Finance Officer will continue to engage with expert external assistance and advice.

(10)    To endorse the proposal to develop an asset disposal strategy to optimise the revenue impact from the divestment (via sale or otherwise) of the Council’s assets and address the need to pay off debt, utilising external advice and support to ensure that best value returns are achieved.

(11)    To agree that a revised Medium-Term Financial Plan be brought to the Executive and Council in October 2023 and then reported quarterly to the Corporate Governance and Standards Committee.

Reason:

To enable the Council to set a balanced budget, which is a statutory requirement and a robust Medium-Term Financial Plan.

Other options considered and rejected by the Executive:

None.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None.